A fight against Lyme disease, Zika virus, fibromyalgia or any other illness may not allow you to continue working. Workers compensation claims just won't cover all the bills. You are getting less then you got before when keeping up with your bills was a challenge. It may take longer than you expect to recover from an illness or injury after an auto accident.
The patience of an employer extends only so far and creditors are even less patient. They just won't accept that you do not have the income to continue to pay them.
Is bankruptcy an option? How can it help? We frequently hear from clients who have the misperception they do not qualify for bankruptcy. Everyone qualifies for bankruptcy. The right question is what kind of bankruptcy will help? Anyone can obtain a fresh financial start - the chapter you file depends on your situation which is different than your friend or neighbor. EVERYONE is different and unique.
You may have insurance or worker compensation claim that is supposed to cover the medical bills, but unless you have short term disability insurance, those reduced compensation payment just won't pay the monthly bills. You lose your job and there goes the medical insurance. Credit may be all that is keeping a roof over your head and food in the refrigerator. The time out of work can put you in a deep financial hole. Part-time work is just not enough even if you are lucky enough to have a second household income. You may never have the resources to catch up and climb out of the financial hole.
Here are some of the differences between Chapter 7 and Chapter 13 bankruptcy. In both types of bankruptcy, you get a discharge of your debts. We will analyze your individual situation and recommend options for you so you can make a decision. Bankruptcy may not be your best solution, but you owe it to yourself to learn about your options and make the best decision based on your situation.
A Chapter 7 filing
Timing is everything! We would first recommend you contact us to do good planning before the bills have become a mountain of debt. The best time to talk to an attorney about your financial issues was yesterday. Waiting can be detrimental. Pre-planning can be a life saver. Don't let mounting bills get you down.
Chapter 7 bankruptcy is dependent upon your income, and a financial measurement called a "means test." If your income is below median income, you would qualify for a Chapter 7 debt discharge of unsecured debt - this includes credit card balances and medical debts.
There are exceptions to the means test for military service members. People on social security have certain exceptions from the means test. Everyone's situation is a little different, that's why we say, your neighbor or friend is not qualified to give you legal advice.
Chapter 13 is the most flexible form of bankruptcy. In a Chapter 13, we get to select who we will pay, how much we will pay them and when they will be paid within the limits of the bankruptcy code. It is different, but the end result is still the same - you end up with a discharge and a fresh start. You will be required to make monthly payments based upon your budget. However, Chapter 13 allows you to consolidate your secured debts into one payment and unsecured debts may not have to be paid at all. You make one payment for a minimum of 36 months.
The recipe for a fresh start is unique to your situation. One size does not fit all. Each fact needs to be weighted. What is best for you right now is to contact us so we can plan for your financial future. Is bankruptcy right for you? We don't know until we have met and discussed with you what is best. Call NOW 785-379-6642 to schedule a free initial consultation with one of our attorneys at Wiechman & Gasper, P.A.